Mid-Terms, Magic Kingdoms and Middling Markets
Fresh off a rather unfulfilling mid-term election where nothing seems decided, Walt Disney Company (DIS) drops over 10% on a huge earnings miss. With all of the uncertainty and news, mid-term might be an adequate way to define the current stage of the bear market that may only be half-way to its lows. (GRWG, CGC,…
Data and Fed Sets Up Explosive Week
The market is setting up for a big week as the Fed and jobs data are released. With the Dow poised to have its biggest October performance in history and the biggest month since 1976, what's next for stocks? Is the market poised to head lower as jumbo valuations continue to drag, or is this…
Is It Time to Buy?
Despite the S&P 500 making its highest close since September 20, today's trade was more defensive in nature. The new high close saw Healthcare and Staples lead as the volatility backdrop is open for bigger upside movement. With the Fed as spoiler, it appears the market may be playing it safe. (KO, KDP, DLTR, CVS,…
Can Bank Earnings Save The Market?
Bank of America (BAC) reported better than expected earnings as the market closes near high and cyclicals lead. Under the surface, a large print points to key level and option activity looks to reset hedges and speculate on earnings this week. (IWM, SPY, JBHT, KNX, DKS, HYG, IYR, KGC, CDE, CTRA, MRO)..
Markets Begging Feds for a Redo
With the escalation of the conflict in Ukraine, it's no wonder defense stocks rallied on Monday. The surprise was the drop in gold as a supposed inflation hedge. Amidst the madness, money managers are increasingly petitioning for the Fed to pivot as performance suffers. (XLP, XLU, PYPL, HYG, FCX, BX, PMT, XLU, AG)
Hope for Fed Pivot Helps Stocks Despite Data
Are we back to what's good is bad and bad is good? It sure appeared so as ISM Manufacturing New Orders slipped into contraction and Apple expects App Store purchases to decline. What's about to lead the way in the short-term recovery? (AAPL, XLU, JPM, OXY, TSLA, PCG, KO)...
Market at Pivotal Level as Currency Crisis Deepens
The S&P is back to where it began in mid-June, which means the next leg lower could be a big one. As the S&P tests key levels, the currency markets are roiling and the bond market is getting more volatile. Today was a big roll day with bullish option activity in gold and bearish activity…
Rally Ho! S&P 500 Finishes at Highs as the Fed Looms
After a weak start to the session, the S&P 500 rallied to close at the high. While the move indicates the potential to see a near-term rally off of an oversold level, the overall tenor of the market remains bearish. With the Fed likely to raise 75bp on Tuesday, the interest rate outlook and weakening…
Dollar Weakness Propels Stocks Higher. What's Next? Survey Says...
The dollar can create wind in the sales of equities when there isn't much else to drive it. With Inflation data on Board for tomorrow, today's move had more to do with dollar weakness than market strength. Looking forward, is the next move in the market more like the early June swoon or the late…
REITs and Utilities Show Glimmer as the S&P Wilts
The S&P 500 failed to close below last Thursday's low as Utilities and REITs were bid. However, the glimmer that was shown today may not be very enduring as the weight of the Fed is likely to overwhelm the market and economy in the coming months. (BAC, EWG, IYR, KRE, TLT, KMI, CHRW, CDE, XBI)...